Hershey Is Near Resistance

Published on Monday, 04 June 2012 07:44 Written by TradersHuddle Wire

New York, June 4th (TradersHuddle.com) - Shares of Hershey Company (NYSE:HSY) are trading very close to calculated resistance at $67.45. The stock ended the trading session at just $65.90, which is near levels that make it difficult to buy or start a position.

Hershey Company (NYSE:HSY) manufactures chocolate and sugar confectionery products. The Company's principal products include confectionery and snack products; gum and mint refreshment products; and food and beverage enhancers such as baking ingredients, toppings and beverages.

Hershey's stock range is defined by its calculated support defined at $55.32 and by the resistance level at $67.45; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.

Traders don't have a clear entry point for Hershey. However, as the stock pulls back towards $55.32 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $67.45 then traders will get an opportunity to enter the stock as it moves to a higher range.